Kardec Trader explains the flat-based breakout entry: draw a horizontal line across a consolidation's flat top instead of downtrending lines. Horizontal lines are more objective because they create a clear rule, price above the line is good, below is bad, whereas wicks and closes vary between traders.
You'll get price kind of going sideways, right, in a consolidation rate and you'll have like a flat top. So essentially you can just draw a horizontal line. And so this right here, I like to call it just a simple flat top breakout, where you just have a horizontal line. And part of the reason that I don't like down trending lines is because they can be too subjective. What I mean by that is when you're looking at candlesticks and not line charts, some people draw them at the top of the wicks. Yeah. Some people draw them at the close. Some people have like wicks going through the upper part of their line. And so it's like it becomes too subjective. And I prefer horizontal lines. So where you could literally say price is good above the horizontal line and bad below the horizontal line. And so for me, this is called a flat based breakout.
